Oman-EU Green Hydrogen Alliance: What This Means for Investment and Business Opportunities in Oman
Oman Strengthens Collaboration with EU on Green Hydrogen and Clean Energy
Muscat, Nov 30 — The Sultanate of Oman is intensifying its cooperation with the European Union (EU) in the fields of clean energy and green hydrogen, establishing itself as a key strategic partner in Europe’s pursuit of a low-carbon transition. This development was highlighted during the introductory programme for the Green Hydrogen Summit Oman 2025.
Organised by Oman’s Ministry of Energy and Minerals, the event included the Oman–EU Green Hydrogen Forum, conducted in partnership with the EU-GCC Green Transition Cooperation Project, which is funded by the European Union. The forum emphasized Oman’s goal to develop long-term hydrogen supply chains connecting the Gulf region to European markets.
At the forum, Mohsin bin Hamad al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals, emphasized Oman’s swift progress toward creating a competitive and sustainable future energy system centered on green hydrogen. He pointed to Royal Decree 10/2023 as a pivotal measure, allocating substantial land areas for renewable energy and hydrogen projects, thereby enhancing the investment climate and accelerating project development.
Al Hadhrami outlined Oman’s energy transition strategy, which is based on five pillars: renewable energy, green hydrogen, energy efficiency, electric mobility, and carbon capture and storage. These pillars together form the core framework driving the nation’s shift towards a low-carbon economy in line with global climate targets.
Notable achievements include the establishment of Hydrom to spearhead sector development, the introduction of streamlined regulations and simplified licensing processes, as well as readiness laboratories created through partnerships between public and private sectors. Collaborations with both local and international universities are also fostering research, innovation, and skill development in the field.
Oman’s rich solar and wind resources were underscored as a crucial competitive edge supporting its ambition to become a major producer and exporter of green hydrogen. The country has already inked nine development agreements targeting production capacity exceeding one million tonnes of green hydrogen annually by 2030.
The Ministry of Energy and Minerals highlighted enhancements to recent auction rounds, which now feature incentives such as reduced fees, tax benefits, early-stage support facilities, and plans for shared hydrogen, water, and power infrastructure. Additionally, a single-window licensing system and a national digital platform to track project implementation aim to minimize investor risks.
Al Hadhrami also stressed Oman’s collaboration with European and Asian partners to establish international hydrogen trade corridors and harmonize certification standards. “The global energy transition requires genuine partnerships, and Oman is ready to play a pivotal role,” he concluded.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s strategic collaboration with the EU on green hydrogen marks a transformative opportunity for businesses to engage in a rapidly growing low-carbon energy sector, backed by robust government support and regulatory incentives. Smart investors and entrepreneurs should consider early entry into hydrogen production and related infrastructure projects, leveraging Oman’s abundant renewable resources and streamlined licensing to capitalize on emerging international trade corridors. However, staying aligned with evolving global standards and fostering innovation through partnerships will be crucial to mitigate risks in this nascent yet promising market.
